BlueScope bid for Arrium’s sheet and coil assets approved

The Australian
Competition and Consumer Commission has announced this morning that it will
allow BlueScope’s purchase of Arrium’s OneSteel sheet and coil assets.

Business
Spectator
reports that the ACCC accepted BlueScope’s court enforceable
undertaking to sell BlueScope’s sheet and coil assets in West Australia to
Selection Steel.

There were competition
concerns about sheet and coil distribution in WA, as OneSteel was BlueScope’s
main competition for sheet and coil products.

“Market inquiries have identified strong
concerns that the proposed acquisition would remove OneSteel Sheet and Coil as
an effective competitor and the main alternative to BlueScope in Western
Australia, particularly for customers that require processed sheet and coil
products,” said the commission’s chairman Rod Sims in December last year.

However, the
ACCC is satisfied the divestiture conditions will allow for adequate
competition in WA, it announced this morning.

”The divestiture of BlueScope’s sheet and
coil processing assets to Selection Steel should  enable Selection Steel
to expand its operations in Western Australia and compete with  BlueScope,
particularly in  the processing of sheet and coil products,” said Sims in a statement.

 

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